Tariff Uncertainty To Weigh On Bursa Malaysia Next Week
By Harizah Hanim Mohamed
KUALA LUMPUR, July 26 (Bernama) -- The risk of higher United States (US) tariffs on Malaysia as the Aug 1 deadline draws near is likely to weigh on Bursa Malaysia next week, although domestically-oriented counters are expected to remain relatively resilient, supported by firm internal demand and fiscal tailwinds.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said volatility is expected to intensify as markets approach a critical inflection point in global trade policy.
'Domestically-oriented counters on Bursa Malaysia are likely to remain relatively resilient. However, export-driven sectors may continue to face pressure in the absence of a favourable resolution to the tariff negotiations,' he told Bernama.
He noted that no formal announcement has been made on the revised US tariff schedule for Malaysia.
'Should Malaysia succeed in securing a rate below the symbolic 20 per cent threshold, we anticipate renewed investor interest, particularly in the manufacturing and electrical and electronics sectors. Until then, most investors are expected to adopt a wait-and-see approach, prioritising capital preservation over risk-taking,' he said.
Regionally, market focus is shifting towards renewed US–China trade diplomacy as Chinese Vice Premier He Lifeng is set to lead high-level negotiations in Sweden from July 27–30, ahead of the expiry of the 90-day tariff suspension on Aug 12.
'The outcome will be instrumental in shaping regional trade sentiment and broader market tone heading into August,' Mohd Sedek said.
Globally, investor attention remains fixed on a packed US macroeconomic calendar, particularly with the upcoming the Federal Open Market Committee meeting on July 30, the June Personal Consumption Expenditure inflation print and July non-farm payrolls, which will provide important policy signals.
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